What are the specific obligations of a Bonchon franchisee regarding the use of the franchisor's point-of-sale system (Item 11), and how does this relate to the reporting of Gross Revenues and other financial data?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
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Computer and Point of Sale System and Other Technology
In the future, we may develop or have developed proprietary software. You agree to use proprietary software and software support services that either we develop and provide or which are provided by a third-party supplier we designate, and you will execute any standard form software license agreement reasonably necessary to do so. You agree to purchase from us or our designee, as applicable, new, upgraded or substitute proprietary software whenever we determine to adopt them systemwide, at the prices and on the terms that we or such third-party vendor establish, but you will not be required to do so more than once in any calendar year. You will pay for new or updated programs and materials when you order them. (Franchise Agreement, Section 8.09)
We reserve the right to impose a Technology Fee of up to 1.0% of your monthly Gross Revenues, which will be commensurate with the expenses we or our affiliates incur in providing upgraded or new technology to you.
Before the commencement of operation of the franchised Restaurant, you must purchase the required computer hardware, software, training service, Internet connections and service, required dedicated telephone and power lines, e-mail service, point of sale system, remote helpdesk service, secure payment service, back office equipment, online ordering system, gift card system, mobile ordering systems, order and pay kiosks, point of sale server ordering tablets, kitchen display systems, robotics, PCI compliance hardware and software, credit card processor, credit card chip reader, food
and labor cost management software, digital menu boards, burglar alarm , camera system, music audio and video system, security firewall and networks, network cabling, and other computer-related accessories, peripherals and equipment (the "Computer and Point of Sale System and Other Technology"). See Item 7 for the cost of the Computer and Point of Sale System and Other Technology. We will specify to you the technology stack for the Computer and Point of Sale System and Other Technology which we have negotiated with suppliers for your benefit. Bonchon will supply you with a franchise email address. This email must be used for all communications relating to or on behalf of your Bonchon Business.
You are currently required to use the NCR/Aloha point of sale system or any other system we may designate in the future or approve in advance. We estimate that the required Computer and Point of Sale System and Other Technology will cost from $20,000 to $50,000 for Dine-In Restaurants, Fast Casual, and Delivery and Carryout Only Restaurants; and from $10,000 to $20,000 for a Remote Kitchen Restaurant. If operating a Remote Kitchen Restaurant, you may be required to purchase a non-standard computer or point of sale system as determined by your lease. If your lease for your Remote Kitchen Restaurant requires that you purchase a different computer or point of sale system, then you will not have to purchase the Computer and Point of Sale System and Other Technology that we prescribe.
You must provide all assistance we require to bring your Computer and Point of Sale System and Other Technology on-line with our headquarters computer at the earliest possible time and to maintain this connection as we require. You must input and maintain in your Computer and Point of Sale System and Other Technology all data and information which we prescribe in our Manuals, in our proprietary software and manuals (if any), and otherwise. We may retrieve from your Computer and Point of Sale System and Other Technology all information that we consider necessary, desirable or appropriate. We will bear the telephone costs of this information retrieval. You must accurately, consistently and completely record, structure, capture and provide through the Computer and Point of Sale System and Other Technology all information concerning the operation of the franchised Business that we require, in the form and at the intervals that we require. If the lease for your Remote Kitchen Restaurant requires that you purchase a different computer and point of sale system than what we require, you agree to submit (in the form we prescribe) reports of your weekly Gross Revenues and such other information that we may require in our Manual or otherwise.
You must keep your Computer and Point of Sale System and Other Technology in good repair and are required to pay maintenance and support fees to the suppliers, which will cost approximately between $1,000 and $3,000 per month. This estimate covers the costs of your technology leases, SaaS charges and monthly licensing and subscription fees. If we run tests and determine that the installation will benefit you and us, you must install (at your own expense) whatever additions, changes, substitutions and replacements to your computer hardware, software, telephone and power lines, etc. we direct. You must install these items when we direct. You will pay for these items at the time and upon the terms that the sellers specify. There is no contractual limit on our ability to require you to upgrade the system, add components to the system and replace components of the system. If you are operating a Remote Kitchen Restaurant and the lease for your Restaurant Location requires that you purchase an additional computer or point of sale system, you must maintain and upgrade such computer and point of sale system in accordance with the terms of the lease for your Restaurant Location.
We have independent access to the information entered in the point of sale system. We also have independent access to the back of house and front of house point of sale devices, network devices and Wi-Fi devices for the purpose of troubleshooting and resolving issues with these systems.
In January, 2022, we entered into a SaaS Service Agreement with Yoobic, Inc. ("Yoobic"). Pursuant to that agreement, Yoobic will supply software applications and related services to Bonchon Restaurants for the purpose of improving such Restaurant's customer visibility, in-store execution and efficiency. You are not required to pay for such software applications and related services, but you are required to sign a joinder agreement to the Yoobic SaaS Service Agreement (the "Yoobic
Joinder Agreement"). Under the Yoobic Joinder Agreement, you agree (as an end user of Yoobic's software applications) to comply with the terms for using the Yoobic platform and services as outlined in the SaaS Services Agreement. A copy of the Yoobic Joinder Agreement is attached as Exhibit H to this Disclosure Document.
You must use our designated internet and phone service provider (currently, Windstream) for your Restaurant's internet and phone service.
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees are obligated to use proprietary software and software support services that Bonchon develops or designates through a third-party supplier. Franchisees must execute any standard software license agreement. Bonchon may require franchisees to purchase new, upgraded, or substitute proprietary software systemwide, but not more than once in a calendar year. Bonchon also reserves the right to impose a Technology Fee of up to 1.0% of the franchisee's monthly Gross Revenues to cover the expenses Bonchon incurs in providing upgraded or new technology.
Before opening, franchisees must purchase the required computer hardware, software, training service, internet connections, point of sale system, and other technology-related equipment. Bonchon will specify the technology stack, which they have negotiated with suppliers. Franchisees are required to record all Gross Revenues and expenditures, maintaining accurate books, records, and tax returns. Bonchon may specify the forms and media used for recording Gross Revenues and expenditures in their manuals. These records must be kept for seven years, and failure to maintain them constitutes a material breach of the Franchise Agreement.
Bonchon or its agents have the right to inspect, audit, and copy all records, including books of accounts, bank statements, cash receipts, checkbooks, sales and income tax returns, and files relating to programs, services, and products sold. Gross Revenues include all revenues and income from any source derived from the Restaurant business, whether received in cash, services, or credit. Deductions from Gross Revenues are limited to documented refunds, chargebacks, credits, allowances given in good faith to customers, and sales taxes charged to customers.
The Gross Revenues information for Mature Franchised Restaurants is obtained from weekly royalty reports submitted by franchisees and information polled from point-of-sale systems in the Restaurants. Bonchon has not independently audited this information. Franchisees must also furnish copies of statements, invoices, and checks showing they have spent the required amounts for local advertising, along with an accurate accounting of all expenditures for local advertising and promotion in the previous calendar year, at the same time that they submit the annual financial statements.